No. of Recommendations: 1
There is no question that there are a lot of esignature companies out there. I found this company called contasign after reading a quora question from someone looking for an alternate to Docusign. The founder/CEO of ContaSign personally recommended his company. This company he apparently founded in 2017, which is incorporated in Deleware and the owner lives in India.

If that does not prove the fact esignatures are not a difficult product to develop, I don't know what does. We may be looking at the software equivalent of DRAM chips here. These companies popping up may explain why DOCU's revenue growth has been decelerating, and would have been comparable to Q2's 33% if not for the SpringCM acquisition (at least it was up a little which was nice for a change!).

In other words, DOCU is going to need that System of Agreement to differentiate themselves from ContaSign or the hundreds of other esignature companies out there. Which is what they have been doing. DOCU has spent $300 million on it's software and API so that by now 60% of all esignatures it processes are embedded into other software. That link about TDAmeritrade using DocuSign will be another one. The other 7 software companies listed will not be used for signature.

HelloSign also offers API for esignature. In fact here is a list of 66 vendors offering API for digital signature:

So if DOCU spent $300 million to garner roughly 70% marketshare, should we not invest? A signature is a signature, and as long as it talks to your system, who cares? DOCU has spent the most making sure it talks to your system. Which may explain why companies continue to go with them. Honeywell and Deutsche Bank did not go with Hello Sign, and they surely did not go with Contasign. For some reason, companies continue to go with DocuSign. And DOCU is now working with other Cloud companies for the System of Agreement, a truly differentiating product. There has to be more to it than "it's just a signature."

Who needs to worry about Adobe? Have they put the effort in? They're probably less of a threat at this point to DOCU than they are to TTD because they already have a product out there an it's not catching on in the same way.

But maybe, at the end of the day, DOCU spends $300 million on esignatures, ANET spends roughly the same on cloud networking solutions for a truly differentiated product. So maybe that's where the investment dollars should go, where competition won't be a concern, though people do fret over those white boxes there.

OTOH, Abiomed is growing just as fast, and has none of these issues. MDB is growing faster and has a database instead of a signature, but there are hundreds of databases out there. BTW the poll suggesting MDB is the way to go over DOCU does not help me much. A similar poll was taken on the SPLK premium board about a year ago, and despite it being the SPLK board, people chose ANET as having better potential. It has not worked out that way so far.
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